What Is the Penalty for Using a Stolen Credit Card?
Credit card fraud is one of the most difficult crimes to prosecute. In 2008, about $800 million was stolen from consumers through credit card fraud in the United States alone. The federal government will not investigate credit card fraud unless the theft reaches a certain monetary threshold, and local authorities do not have the resources to track many of the criminals.
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Types of credit card fraud
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While many people cancel credit cards right away when they discover it is missing, there are other ways a thief can perpetrate credit card fraud. If a victim's identity is stolen, the criminal can open up credit card accounts under his or her name and charge large sums before a person even knows what is going on. Or a criminal can take over an account by gathering enough personal information to pose as the victim and gain access to his or her statements or online login information. In recent years computer hackers have broken through security systems at retail stores to obtain credit card data. Or a dishonest bank employee can "skim" a person's credit card information from a transaction and use it for fraudulent purposes.
Consumer liability on stolen credit cards
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Federal law says that cardholders are only responsible for the first $50 of fraudulent charges on their credit cards as long as they sign an affidavit stating that the charges were made by somebody other than the cardholder.
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Investigations
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If credit card theft exceeds $2,000, the Federal Trade Commission (FTC) will get involved in the investigation. If the amount is over $150,000 the Secret Service gets involved. Local authorities investigate amounts under $2,000.
Penalty
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The penalty for credit card fraud is different in each state and is based on the amount that was stolen. Petty thefts are those under $250, and grand larceny is committed when someone steals more than $1,000. The thief, if apprehended and convicted, usually makes a deal with prosecutors to pay restitution to the credit card companies in exchange for less jail time and fines. Jail times vary by state and by federal government involvement, but a person convicted of credit card fraud can serve between one to five years in jail.
Reporting a theft
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Victims of credit card fraud should contact their local police departments and fill out a report. Next contact the credit card company to dispute the charges. A final call or email can be placed to the National White Collar Crimes Center.
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